Filipinos more cautious about finances as expenses rise, TransUnion study shows

FILIPINO HOUSEHOLDS remain cautious about spending and borrowing even as they see stable incomes as they expect rising expenses in the coming months, a TransUnion Philippines report showed.

The Q4 2025 Consumer Pulse Study by TransUnion showed that Filipinos are tightening their budgets and becoming more intentional with their spending and use of credit.

Half or 50% of respondents said they plan to cut back on holiday spending this year and only a quarter (27%) seek to splurge on costly goods.

This comes even as three in four or 75% of Filipinos see an increase in their incomes over the next 12 months. Based on the study, 80% of the Filipinos surveyed expressed optimism on their household finances next year.

“The trend mirrors the wider economy — still expanding, but at a calmer pace after two years of rebound,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.

“Consumers are managing spending more pragmatically, especially with Filipinos looking to spend less this holiday season compared to last year. It’s a sign of practical optimism. People are still participating in the economy but are doing so on their own terms and with greater financial intent.”

Most households still had the same concerns as they did last year, with 81% worrying most about inflation on basic commodities, 57% about job stability, and 45% about interest rates.

This indicates that consumers weigh long-term challenges more than short-term issues in budgeting.

Meanwhile, the study also showed that over half or 58% of Filipinos see credit access as crucial in obtaining their financial goals.

A total of 42% expressed confidence in credit access, with Gen X being the most confident with 47%, followed by Millennials with 46%.

However, TransUnion noted that borrowers have shifted to small-scale loan products, with 49% leaning towards personal loans and 35% on buy now, pay later.

“We’re seeing a real shift in how Filipinos view credit. It’s moving from being a necessity to becoming a choice,” Mr. Sun said. “Credit remains available, but consumers are weighing their options more carefully, guided by how secure they feel about their jobs and savings. It’s a more thoughtful use of credit as a tool, not a crutch.”

“As this mindset continues to evolve, it’s equally important for consumers to stay informed by regularly monitoring their credit health,” he added.

TransUnion surveyed 961 Filipinos aged 18 and above from Sept. 25 to Oct. 15. — Katherine K. Chan